The internet of things (IoT) is an infrastructure of interconnected mechanical and digital machines, people, computing devices or systems that process and respond to physical and virtual information with unique identifiers (UIDs). IoT provides the ability to transfer data over a network without requiring machine-to-machine (M2M), person-to-person (P2P), and person-to-machine (P2M) interaction.
Factors Driving Growth of the Global IoT Infrastructure Market
IoT has changed the way machines interact with humans and other machines. The sensors that form the building blocks for IoT create tons of data every minute and every day. Various organizations and government bodies are using big data analytics and other smart technologies, which are expected to boost the communication infrastructure, which in turn will be used for lighting, parking, traffic, and waste management; citizen engagement; safety and security. In addition to this, favourable government initiatives related to smart city projects across the globe are expected to fuel growth of the global IoT infrastructure market. Governments across the globe are creating favorable policies and heavily investing in smart city projects. For instance, in June 2015, the Government of India launched ‘100 Smart Cities Mission’ with an allocated budget of US$ 6.9 billion. Moreover, increasing adoption of internet of things (IoT) by supply chain, manufacturing, and retail industries to optimize workflow, for better allocation and utilization of assets, and to reduce operating costs is expected to drive growth of this market.
Factors Restraining Growth of the Global IoT Infrastructure Market
Concerns over security and privacy of the data is a major factor that is expected to restrain growth of the market. Moreover, cyber-attacks and data theft can also pose a threat to the market.
Regional Analysis of IoT Infrastructure Market
On the basis of region, the global IoT infrastructure market is segmented into North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.
In 2018, North America region accounted for the largest share in the IoT infrastructure market and is expected to hold dominant position in the market over the forecast period. Countries such as the U.S. have already implemented smart solutions in their cities. For instance, in 2017, the street traffic control system was adopted in Atlanta. This street traffic control system uses data from multiple sources and AI elements, and uses the data generated through these systems in automated traffic lights for drivers and pedestrians, automatic green corridors for emergency vehicles, and warnings for pedestrians among others. The adoption of systems such as smart street lighting, smart waste management, and smart traffic control for public utilities, transportation and services is driving the IoT infrastructure market.
Moreover, increasing adoption of smart technologies such as automation, artificial intelligence, etc. are fuelling growth of IoT infrastructure market in North America region.
Asia Pacific is expected to be the fastest-growing region during the forecast period (2019-2027). Increasing demand for connected infrastructure in emerging economies such as India and China is driving the market growth in Asia Pacific region.
Key Players in the Global IoT Infrastructure Market
Some of the key players operating in the global IoT infrastructure market include CISCO Systems, INC., Amazon Web Services Inc., Accenture PLC, IBM Corporation, Microsoft Corporation, SAP SE, Oracle Corporation, Intel Corporation, PTC Inc., and AT&T Inc.
Global IoT Infrastructure Market: Taxonomy
The global IoT infrastructure market is segmented on the basis of technology, platform, component, application, and region.